Slide 1: Emperador Inc. 9M2019 Financial Results
EMPERADOR INC. 9M2019 Financial Results 1
Slide 2: 9M2019 Financial Results
9M2019 FINANCIAL RESULTS 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS 2
Slide 3: 9M2019 Financial Highlights
OUR FINANCIALS 9M2019 Financial Highlights P33.8b P5.3b 29% 1.6b WHISKY NET INCOME* REVENUES BRANDY 71% 11% 15.6% 2.7% NET INCOME REVENUE NET INCOME MARGIN * BREAKDOWN GROWTH * 3 *Attributable to parent
Slide 4: 9M19 Performance Update
OUR FINANCIALS 9M19 Performance Update 3Q19 YoY 9M18 9M19 YoY Commentary Growth driven by both brandy REVENUES (PHPm) 12,378 12% 30,547 33,828 11% and whisky GROSS PROFIT (PHPm) 4,800 25% 10,902 12,123 11% Robust margins due to product mix; faster growth of GROSS PROFIT MARGIN 39.5% 36.6% 36.5% sale
Slide 5: Latest Financial Performance
OUR FINANCIALS Latest Financial Performance Revenues (PHPm) Gross Profit (PHPm) & Margin 39.5% 33,828 36.6% 36.5% 12% 30,547 11% 36.1% 10,902 12,123 11,044 12,378 3,843 4,800 25% 11% 3Q18 3Q19 9M18 9M19 3Q18 3Q19 9M18 9M19 EBITDA (PHPm) & Margin Net Income (PHPm) & Margin* 25.5% 25.4% 24.4% 17.6% 23
Slide 6: Financial History
OUR FINANCIALS Financial History Revenues (PHPm) Gross Profit (PHPm) & Margin 15% 47,050 35% 34% 31% 38% 35% 35% 43,645 31% CAGR 41,018 42,656 26% 29,865 32,009 15,306 14,942 16,041 19% 13,679 23,594 10,903 17,355 CAGR 8,210 9,225 4,445 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 201
Slide 7: Segment Breakdown
OUR FINANCIALS Segment Breakdown Revenues Gross Profit EBITDA Net Income (PHPm) 9M18 9M19 9M18 9M19 9M18 9M19 9M18 9M19 Brandy 21,261 24,087 7,192 7,982 5,731 5,742 3,788 3,727 Whisky 9,286 9,741 3,710 4,142 1,715 2,131 1,460 1,577 EMP Inc. 30,547 33,828 10,902 12,123 7,446 7,873 5,248 5,304 • Reven
Slide 8: Gross Profit Margin
OUR FINANCIALS Gross Profit Margin 44.8% 42.1% 40.2% 40.3% 39.6% 38.9% 39.7% 37.3% 35.2% 34.6% 35.3% 35.0% 34.2% 37.1% 34.6% 35.1% 32.7% 31.7% 32.9% 31.6% 30.1% 30.3% 19.7% Whisky 18.1% Brandy Emp. Inc 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 8
Slide 9: Solid Capital Position
OUR FINANCIALS Solid Capital Position Net Debt to (PHPm) Cash Debt Net Debt Commentary Equity Lower gearing mostly due to 6,171 37,675 31,504 48% foreign exchange translation 9M19 6,171 32,300 26,129 40% Ex Equity-linked security Lower cash due to share buyback 6,228 39,274 33,045 54% and dividend p
Slide 10: 9M2019 Financial Results
9M2019 FINANCIAL RESULTS 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS 10
Slide 11: Fundador Supremo 18 YO
FUNDADOR SUPREMO 18 YO Best Brandy in the World 2019 International Wine and Spirit Competition (IWSC) Fundador Supremo 18 competed against 100 top-tier brandies from all over the world to win the IWSC Worldwide Brandy Trophy Award for 2019. 11
Slide 12: Brandy Hierarchy
Brandy Hierarchy c. Php120 c. Php260 c. Php350 12 12
Slide 13: Malt Hierarchy
Malt Hierarchy c.Php1,250 c.Php1,700 c.Php1,900 c.Php2,500 c.Php3,580 13
Slide 14: 9M2019 Financial Results
9M2019 FINANCIAL RESULTS 1. OUR FINANCIALS 2. UPDATES 3. KEY TAKEAWAYS 14
Slide 15: Key Takeaways
KEY TAKEAWAYS Future-proofing, Premiumization and Profitability Future-proofing Premiumization Profitability dominance We want to secure We are best We want margin our dominance in positioned to do sustainability and Philippine liquor premiumization in the stability. while making a dent Philippines.
Slide 16: Emperador Inc.
— 4 = I fi l <i EMPERADOR INC. 16